A hailstorm that dents thirty cars on your lot, a customer hurt on a test drive, a break-in that takes your keys and your titles. Any one of these can cost a dealership more than a month of sales. Car dealer insurance is the set of business policies that pays for these losses, so one bad day does not close the lot.
Hereth Insurance Consulting is an independent insurance agency in Columbia, MO. We help used, independent and franchise dealers across Missouri compare coverage from 100+ carriers and build the right package. Request a free quote, or keep reading to see what your dealership needs.
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CAR DEALER INSURANCE MISSOURI
Car dealer insurance is not one policy. It is a package of business insurance coverages built for businesses that buy, store and sell vehicles. Owners also search for auto dealer insurance, used car dealer insurance or car dealership insurance. They all describe the same package. Most Missouri dealers start with these five coverages:
Garage liability is the core policy for a dealership. It pays when someone is hurt on your lot or in your showroom, or when your operations damage another person’s property or vehicle. It also responds to many claims that come from using vehicles in your business, such as test drives, subject to your policy terms. A standard general liability policy often leaves these auto-related exposures out. Read our guide to garage liability insurance to see how it differs from garagekeepers and general liability.
Your inventory is your biggest asset, and it sits outside. Dealer open lot coverage protects the vehicles you own and hold for sale from losses such as hail, theft, vandalism and fire. Garagekeepers coverage is different. It protects customer vehicles in your care, custody or control, such as cars in your service bay or trade-ins waiting for appraisal. Many dealers need both. Covered perils and limits vary by carrier, so we compare the details for you.
Missouri requires new franchise, used, wholesale, powersport, trailer and boat dealer applicants to file a $50,000 corporate surety bond (or an irrevocable letter of credit) with the dealer license application, under RSMo 301.560. A bond is not insurance. It protects buyers if a dealer fails to deliver title within 30 days or breaks licensing rules, and the dealer repays the surety for any claim. Your cost is a percentage of the bond amount, based on your credit. Always confirm current licensing rules with the Missouri Department of Revenue before you apply. We can help you plan your insurance and bond requirements together.
Customers behind the wheel are part of every sale. Tell us how you handle test drives, loaner cars and courtesy vehicles, because those practices change how your policy is written. Written test-drive agreements and driver’s license checks are simple steps that help both your risk and your underwriting. If employees drive their own vehicles on dealership business, ask us about hired and non-owned auto coverage.
Sales, service and lot staff can be hurt on the job. Workers’ compensation pays medical bills and lost wages when an employee is injured at work. According to the Missouri Department of Labor, most Missouri employers must carry it once they have five or more employees. Commercial property insurance covers your showroom, tools, signs and equipment from fire, theft and other covered losses.
A personal auto policy often will not cover a vehicle your business owns and uses, such as a courtesy shuttle, tow truck or parts van. Commercial auto insurance covers those vehicles and the people who drive them. Read our guide to commercial auto insurance in Missouri for details.
No two dealerships pay the same price, so we do not publish a number here. Carriers look at several factors when they price coverage:
Better lot security, written test-drive agreements, driver’s license checks and a clean loss record all give underwriters a better picture of your dealership. The most reliable way to see real numbers is a side-by-side comparison, so we request quotes from several carriers for your exact dealership. For a wider view of how commercial premiums are built, read our guide to commercial insurance costs.
Any business that sells vehicles needs this protection. That includes:
Lenders, landlords and floor plan providers often ask for proof of coverage and a certificate of insurance. We issue certificates fast so you can keep your lease, your financing and your vendor accounts moving.
Most car dealers need garage liability, dealer open lot or garagekeepers coverage, commercial property and workers’ compensation. Dealers with company vehicles also need commercial auto, and most must post a surety bond to hold a dealer license. A Hereth agent can match car dealer insurance to how your dealership operates.
There is no single monthly price. The cost depends on your type of dealership, inventory value, payroll, sales volume, location, security, claims history and limits. A small used car lot and a franchise dealership will not pay the same. We compare quotes from several carriers so you can see real options for your dealership.
Dealer insurance combines several policies, usually written together, that protect your lot, inventory, customers and team. You pay a premium, choose limits and deductibles, and the carrier pays covered claims up to those limits. For example, garage liability responds to a test-drive accident, and dealer open lot coverage responds to hail damage to inventory.
No. Carriers insure sole proprietors, partnerships, LLCs and corporations, so an LLC is not required to buy car dealer insurance. An LLC can help separate business and personal assets, so talk to an attorney or accountant about the right structure. We will help you place coverage for whichever structure you choose.
Getting covered is simple. Have these items ready before you call:
| Coverage | What it protects | Why it matters for a dealership |
|---|---|---|
| Garage liability insurance | Injuries and damage from your operations and premises, including test drives | Covers claims if a customer is hurt on your lot or in a test-drive accident |
| Dealer open lot coverage | Vehicles you own and hold for sale | Covers inventory losses such as hail, theft, vandalism and fire |
| Garagekeepers insurance | Customer vehicles in your care, custody or control | Covers service-bay cars and trade-ins while they are with you |
| Commercial property insurance | Your showroom, tools, signs and equipment | Covers fire, theft and storm losses |
| Workers’ compensation | Medical costs and lost wages for injured employees | Covers on-the-job injuries for sales, service and lot staff |
| Commercial auto insurance | Dealership-owned vehicles such as shuttles and tow trucks | Covers vehicles your business owns and uses |
If you also repair vehicles, see our guide to auto repair shop insurance.
Hereth Insurance Consulting is an independent agency based in Columbia, MO, serving Missouri businesses. We work for you, not for a single carrier.
Whether you run a small used car lot or a multi-location dealership, our goal is simple: find coverage that fits your business and your budget.
Whatever else is going on with your business, our team can usually fold it into the same conversation, so there is no need to start from scratch with a separate agent for every policy.
Your dealership depends on your inventory and your customers’ trust. Let us build coverage that protects both.
🚗 Call 573-475-4015, email Jordan@HerethInsuranceConsulting.com or visit us at 1207 W. Broadway, Suite 103, Columbia, MO 65203.
Our insurance office is based in the heart of Columbia, Missouri. Whether you prefer to meet in person or connect remotely for a consultation — expert insurance guidance is always available both ways, at no cost to you.
